Solana gained bearish momentum and was trading below $20 against the US dollar. SOL price may now struggle to recover above the $20 and $21 resistance levels.
- SOL price is showing bearish signs below the USD 20.50 resistance against the US dollar.
- The price is now trading below $19.80 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near $19.90 on the SOL/USD pair’s 4-hour chart (data source from Kraken).
- The pair could recover, but gains could be limited above USD 20.
Solana Price extends losses
This past week, the price of Solana started to fall again from well above $21. SOL gained bearish momentum and it was able to trade below the USD 20.50 support.
The bears strengthened and pushed the price below the USD 20 support. The price is now showing bearish signals below USD 20, similar to Bitcoin and Ethereum. A low is formed near $18.70 and the price is now consolidating losses.
SOL is now trading below $19.80 and the 100 simple moving average (4 hours). A major bearish trendline is also forming with resistance close to $19.90 on the SOL/USD pair’s 4-hour chart. On the upside, immediate resistance is near the $19.80 level and trendline.
The next major resistance is near the $20 zone or the 50% Fib retracement level of the downward move from the $21.51 swing high to the $18.70 low. The main resistance is now forming near the $20.50 level and the 100 simple moving average (4 hours).
Source: SOLUSD at TradingView.com
The 61.8% Fib retracement level of the downward move from the $21.51 swing high to the $18.70 low is also near $20.50. A close above the $20.50 level could again send the price to the $21.50 resistance zone. More winnings could send the price to the $22 level.
Lose more in SOL?
If SOL fails to clear the $20.50 resistance, it could fall further. The first support on the downside is near the $19.00 level.
The first major support is near the $18.80 level, below which the bears could gain strength. In the said case, the price of Solana could possibly fall towards $18.20 support. The next major support is near the $17.50 level.
Technical indicators
4am MACD – The MACD for SOL/USD is gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $18.80 and $18.20.
Main resistance levels – $20.00, $20.50 and $21.50.